(RTTNews) – Partially reversing yesterday’s surge, gold prices have edged lower on Friday as the status of U.S.-Iran peace talks remains unclear after the recent skirmish while expectations of a high-interest-rate regime in the near-term in the U.S. continue to rise.
Front Month Comex Gold for August month delivery has moved lower by $25.10 (or 0.61%) to $4,115.70 per troy ounce.
Front Month Comex Silver for August month delivery also edged lower by $0.627 (or 1.04%) to $59.900 per troy ounce.
The prospects of reaching a peaceful settlement in the U.S.-Iran conflict faded after three ships traveling across the Strait of Hormuz in the Persian Gulf were hit by unidentified projectiles on Monday.
The U.S. and Iran signed an interim Memorandum of Understanding on June 17 where both nations agreed to halt their mutual attacks for a 60-day period.
Significantly, Iran reopened the Strait of Hormuz which it had shut at the beginning of the war, and consequently stranded ships laden with oil and energy cargo started moving ahead to their respective destinations.
However, in response to Monday’s projectile hits, U.S. Central Command conducted strikes on nearly 170 targets in Iran on Tuesday and Wednesday.
Iran’s Islamic Revolutionary Guards Corps hit back on the U.S. bases in Kuwait and Bahrain as well as in Qatar and Jordan.
After Monday’s projectile attacks, U.S. President Donald Trump first stated that the ceasefire agreement is “over” and remarked that negotiating with Iran was a “waste of time.”
At the same time, Trump stated that he allowed the U.S. negotiators to continue with the diplomatic process.
Later, Trump stated that Iran reached out to the U.S. desperately wanting to make a deal but expressed his doubts over Iran’s preparedness to keep up any agreement.
U.S. Secretary of War Pete Hegseth warned that the U.S. military would strike more and deeper, if necessity arises.
Both nations were set to restart the negotiations after the burial of Iran’s slain Supreme Leader Late Ayatollah Ali Khamenei which ended yesterday.
Following Trump’s mixed remarks that oscillated between a military response and a diplomatic route to settle the crisis, investors turned cautious from making big moves.
While the Iranian economy suffers from extraordinary inflation, oil-linked price increases in the U.S. is impacting household consumption. Economists are of the view that domestic pressure could draw both nations back to the negotiating table.
Axios reported that Qatar and Pakistan as well as Iran’s regional neighbors have stepped up their efforts to bring back the U.S. and Iran for discussions. A Qatari team arrived in Iran to discuss with Iranian officials on further steps.
According to a Kpler report, only around 22 ships passed through the Strait of Hormuz on Thursday while the numbers was 30 on Wednesday. Last Thursday, before the breakout of this renewed conflict, nearly 48 vessels passed through the strait.
Late Thursday, citing U.S. Central Command, Al Jazeera reported that the U.S. military did not carry out any further strikes in Iran in the past few hours. In the absence of fresh strikes for the past 48 hours, crude oil prices declined sharply.
Amid Middle East uncertainty and the latest U.S. Federal Open Market Committee’s minutes from the June meeting, which hinted at a hawkish leaning, gold prices have inched lower today.
The U.S. Dollar Index was last seen trading at 100.87, down by 0.04 (or 0.04%).
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